Why does the economic-enterprise budget include depreciation or capital recovery and fixed costs?

Q: What is optimal capital budget?

A: Budget: The estimation of the income and expenditure of the particular future period and is…

Q: How does doing budget benefit companies?

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: What is the major benefit of tying a budget to the overall goals of the compan

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Explain direct labour budget.

A: Definition:   Operating budget: Operating budget which projects the budgeted amounts of operational…

Q: Conclusion on the capital budge

A: The question is based on the concept of capital budgeting techniques and financial benefits of…

Q: Why might a rolling budget require more management participation than an annual budget?

A: Budget: It is an estimated and effective way of the utilization of funds for the financial control…

Q: What information do we need for capital budget analysis?

A: A corporation's systematic method for analyzing possible large-scale expenditures or investments is…

Q: What is the meaning of the time value of money? And why the financial manager uses it to decide on…

A: According to the concept of time value of money (TVM), the value of money available at the present…

Q: the advantages and limitations of an annual budgeting system

A: The advantages of annual budgeting system are- 1) It provides a sense of orientation for planning…

Q: What is the function of a cash budget? A capital budget?

A: A cash budget is a financial plan or plan of projected money receipts and payment during the period.…

Q: Can you interpret the effect on revenue , expense and profits if the sale or production differ from…

A: Master Budget shows the estimated results that a company expects to obtain from its operations.

Q: What are the benefits of tying a budget to the overall goals of the company?

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: What is the difference in purpose between an economic-enterprise budget and the results of the…

A: The purpose of the economic-enterprise budget is to estimate sales, costs, and, finally, the…

Q: What is the Net Present Value (NPV) of the yearly (annual) capital budgeting cost?

A: While choosing which investment project will be undertaken, different appraisal techniques are used.…

Q: How does the payback period approach capital budgeting? Examples of 1 advantage and 1 disadvantage?

A: Pay back period approch in capital budgeting is use to analysis two or more projects. The project…

Q: Explain how capital budgeting handles a gain or loss on disposal

A: This question explains about capital budgeting handles a gain or loss on disposal:

Q: what is an example of a discounted payback period? which is one of the six models of a capital…

A: Before investing in new assets or projects, feasibility of the project is evaluated by using various…

Q: What are the benefits of making an operating budget?

A: Operating Budget: The operating budget is that budget which is prepared to plan all the operating…

Q: Should capital budgeting decisions be made solely on the basis of project’s NPV?

A: Net present value is the method of capital budgeting, under this method the present value of future…

Q: What is a static budget performance report?

A: Static Budget Performance report: The Static Budget Performance report reports the variances.…

Q: Why should the opportunity costs of a farmer's labor, capital, and management be included on an…

A: Opportunity Cost is the cost foregone on the next best alternative, if a particular option is…

Q: What is capital budgeting?

A: The Capital Budgeting, in simple terms, is the process of evaluating which project to choose in…

Q: Why are interest charges not deducted when a project’s cash flows are calculated for use in a…

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: An introduction to capital budgetin

A: Capital budgeting : Capital budgeting is the process of choosing a project that is profitable for a…

Q: Define each of the following terms:a. Capital budgeting; payback period; discounted payback period

A: Capital Budgeting is a decision making process in which company requires to evaluate long-term…

Q: Which of the following is an operating budget?A. cash budgetB. production budgetC. tax budgetD.…

A: An operational budget seems to be a projection of projected income and costs for one or even more…

Q: Are the engineers responsible for making capital budgeting decisions?

A: Capital budgeting decisions are the decisions which are concerned with the allocation of limited…

Q: Define Capital budgeting.

A: Capital budgeting is used by management to know  which projects will give the best return during  a…

Q: What are the major advantages of self-imposed budgets? Whatcaution must be exercised in their use?

A: Self-imposed budgets: It refers to the budgets in which personnel have responsibility over the…

Q: 6f

A: Opportunity cost: It reflects the profits that a person, financial specialist, or company loses in…

Q: What are the various costs that must be evaluated in a capital budgetingdecision?

A: Capital budgeting is the process of planning to make a decision to invest in long period investments…

Q: Why is the NPV the primary capital budgeting decision criterion?

A: NPV( net present value) is a method to determine the current value of all the cash flows which are…

Q: what is the budget development process?

A: A budget is an instrument for planning, executing, and managing operations in order to make the most…

Q: What is captial budgeting? Why a separate capital budget is needed?

A: The term capital budgeting comprises of two words, "Capital" means the funds needs for the…

Q: Which methods of Capital Budgeting are the best practices for Investment desicions of power plant…

A: Answer: Capital budgeting is nothing but a long-term strategic decisions made by company’s top…

Q: What is an operating budget?

A:

Q: what is meant by a “limiting budget factor”

A: Solution: Limiting budget factor is a constraint that prevents expanding the budget when prepared.

Q: What is the capital expenditures budget?

A: Introduction A Budget is a Financial Plan made for a Future period of time. There are many types of…

Q: What is a selling expense budget? What is a capital expenditures budget?

A: A Budget is a Financial Plan made for Future period of time. There are many types of Budgets such as…

Q: Give an example of how the capital expenditures budget affects other operating budgets.

A:

Q: res of a budget

A: There should be a proper fixation of authority and responsibility. The delegation of authority…

Q: What is a flexible budget performance report?

A:

Q: Define capital budget

A: Capital Budget consists of capital receipts and payments. It also incorporates transactions in the…

Q: why is the cash budget regarded as a primary tool in short term financial planning? Discuss

A: Explanation:- The cash budget is 1 of the most important instruments for working capital management…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.